Bitcoin trading volumes in Venezuela continue to grow amid a political crisis in the country. The number of Bitcoin (BTC) transacted in LocalBitcoins reached 2,000 during the last week. This is the largest number of BTC moved in a week in Venezuela. As the economic crisis does not get better, individuals in the country are moving toward Bitcoin and digital assets.
Venezuela Reaches New Bitcoin Trading Volume in LocalBitcoins
Venezuela is a country that has been severely hit by an economic and political crisis. The situation in the country is unsustainable. Citizens in the country are not able to survive with their payments and the hyperinflation does not allow them to live. Poverty skyrocketed up to 90% of the population and millions of Venezuelans left the country.
During the last week, around $7 million worth of Bitcoin exchanged hands in Venezuela. This is taking into account the numbers provided by one of the exchanges, LocalBitcoins. It is also important to note that other individuals trade in the neighbouring countries of Colombia or Brazil. This, the trading volume of digital currencies in the country could be larger.
One of the main reasons why Venezuelans are using Bitcoin and other cryptocurrencies is the fact that their currency is worth nothing. Literally, the local fiat currency is expected to have an inflation rate of one million percent. Dash is also another virtual currency that has been embraced by Venezuelans. Indeed, Venezuela is the country with the largest number of Dash merchants in the world.
Bitcoin can play an important role in the country. Individuals might be able to find a store of value for their few funds that they are able to save. They are also able to easily send and receive funds from families that live abroad. Venezuelans living in other countries in the region tend to send funds to their families using Bitcoin and other digital assets.
Furthermore, Bitcoin donations and fund sent from abroad are allowing people to buy medicines and food, among other things. Although Bitcoin has been in a bear market during the last whole year, this shows that there are many use cases for the digital asset.
Zimbabwe is another country that has been using virtual currencies to avoid a political and an economic crisis. The virtual currency is traded at a premium there and it is used by citizens to pay for the goods and services needed.